National Labor Relations Board v. West Dixie Enterprises, Inc.

Carole Ann Paolicelli and her husband, Paul Paolicelli, were the sole shareholder and operations director, respectively, of West Dixie Enterprises, Inc. (West Dixie) (defendant), an electrical contractor. Paul sometimes made personal loans to West Dixie and used his personal credit card to buy materials and equipment for the company. Carole Ann let West Dixie employees use her personal car for company business. The Paolicellis also frequently used their personal joint-checking account to cover West Dixie’s payroll, and for approximately six months, they used West Dixie funds to pay the rent on their personal apartment. West Dixie was administratively dissolved for failing to file an annual report with the state, but the Paolicellis continued to operate the business under the name West Dixie for approximately one more year. West Dixie committed unfair labor practices in violation of the National Labor Relations Act. After investigating an unfair-labor-practice charge filed against West Dixie, the National Labor Relations Board (NLRB) (plaintiff) brought a complaint against West Dixie and the Paolicellis personally. An administrative law judge found that the Paolicellis were alter egos of West Dixie and personally liable for West Dixie’s unfair labor practices. The NLRB entered a final order affirming the judge’s decision. West Dixie and the Paolicellis appealed.